Document background
The Merger and Acquisition Term Sheet is a crucial preliminary document used in South African M&A transactions to establish the fundamental terms and understanding between parties before proceeding with detailed due diligence and definitive agreements. This document captures essential deal points including transaction structure, valuation, payment terms, and key conditions, while considering South African regulatory requirements such as Competition Commission approval, B-BBEE compliance, and Exchange Control Regulations. It typically serves as a non-binding roadmap (except for specific provisions like confidentiality and exclusivity) and is used during the initial stages of transaction negotiations to ensure all parties are aligned on key terms before incurring significant costs in detailed due diligence and documentation.
